The National Bank has kept the discount rate at 12 per cent

The National Bank of Kyrgyzstan has kept the discount rate at 12 per cent per annum. The decision was taken by the NBKR’s Board on 24 August and comes into force on 25 August 2026.

The policy rate is one of the National Bank’s key instruments for regulating the economy. Put simply, the regulator uses it to try to curb price rises. When inflation accelerates, a high rate makes loans more expensive and reduces excess demand. This helps to slow down price rises, but at the same time can make it more difficult for businesses and the public to access credit.

The National Bank noted that external conditions remain the main factor influencing price trends. In particular, geopolitical tensions and fluctuations in global commodity and food prices are affecting the cost of imported goods. Since the start of the year, consumer prices in Kyrgyzstan have risen by 7.3 per cent, with annual inflation standing at 11.7 per cent. Food prices have risen by 6.3 per cent, non-food prices by 5.8 per cent, and services by 11.1 per cent.

One of the most significant drivers of inflation in recent months has been the rise in the cost of fuel and lubricants. Rising fuel prices increase transport and production costs, which may ultimately be reflected in the cost of goods and services for consumers.

At the same time, economic activity remains high: between January and July, real GDP grew by 11.1 per cent. This growth is being driven by investment, primarily in construction, as well as by an increase in domestic consumption and lending.

The National Bank believes that persistent external risks to price growth require the maintenance of tight monetary conditions. The regulator will continue to manage the volume of free money in the banking system to limit its impact on inflation.

For the public, the decision to keep rates unchanged means that no sharp easing of lending conditions should be expected in the near future. At the same time, the decision is aimed at curbing further price rises and maintaining economic stability.

The NBKR emphasised that monetary policy may be adjusted should new risks to price stability emerge. The next scheduled meeting of the Board on the policy rate will take place on 26 October 2026.